Things you Need to Understand about your Life Insurance Plan
Do you carry health insurance, including both vision and dental? It is likely that you are aware of your health insurance coverages and premium costs, but that you know very little about your life insurance plans. Sometimes life insurance plans are included in traditional health insurance plans and other times that are a separate benefit that is offered by your employer. It is important to evaluate and understand your life insurance. You want to protect your loved ones and the best way to do that is with preparation.
Gather all of your work related benefit packages
When you start a new job, you probably sign on to the benefits, but never really pay attention to what they include. If you have a family, you might have already learned of the health benefits, but fortunately, you have not had to yet use your life insurance policy. The best way to understand all of your work related benefits is to gather all of the paperwork you received upon employment. This paperwork might change each year that you are still with the same company. Keep it all together in a file, so you can pay attention to what has changed over the length of employment.
Utilize human resources as a valuable source of information
Human resource professionals are tasked with handling health insurance and life insurance information. If you have questions about your life insurance plans, the human resource team is a great way to get answers. They can go over your life insurance plans policy with you and make any adjustments as necessary. While 86% of those surveyed mentioned that they would agree that most people will require some amount of life insurance coverage, many people do not take the appropriate steps to ensure that they have enough coverage.
Understand the specific life insurance requirements
There are requirements for both health insurance and life insurance. For example, health insurance might require that you see only in network medical providers and that you live an overall healthy lifestyle. This means that you do not take illegal substances, you avoid smoking, and you get your annual checkup exams. Your life insurance policy might also have requirements. One of the most common requirements is an entrance medical exam. Failing to meet these requirements can void your life insurance plans.
Look at the specifics of the life insurance plans
Probably one of the most important things you will want to consider is the exact coverages in your life insurance plan. Firstly, how much will the insurance plan provider to your spouse and family? Will your children get any funds? What will happen to any debt or properties that you own? Understanding your life insurance plan in detail can help you create and manage a living will. It can help you meet the gaps of the insurance plan. Fortunately, more and more employees are considering their insurance plans. About 40% of Millennials showed some level of interest in a life or LTC combination policy, and 25% of all consumers said they would be interested in such insurance products.
Health and life insurance are essential health benefits that may or may not be covered under your employer. Either way, it is important to fully understand your coverage. Currently, about 3 in 5 people own some type of life insurance, and another 34% report being likely to make a purchase within the coming year. People are paying more attention to the need for life insurance, yet, not enough consumers fully understand what they are paying for. Work with your human resource team and go over your paperwork. Work any gaps into a living will and you can rest easy, knowing that you are prepared.